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Identify and explain the concept from given illustrations.Government of India borrowed from nationalized bank for construction of bridge. |
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Answer» Concept: Internal debt Explanation : When the government borrows from its citizens or nationalized banks, it is called internal debt. It means borrowing within a country, for development of infrastructure facilities in a country. Provision of infrastructure like roads, bridge energy supply, etc., require huge investment. So, government borrows money in form of internal debt from RBI, nationalized banks or citizens of a country. |
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